Construction of a factory of the Chinese car parts company Mei Ta began in Belgrade's suburbs on Saturday.

Work at the Belgrade's "free industrial zone" in Baric, where Mei Ta will invest 60 million euros (68.36 million U.S. dollars) and employ 1,400 people, officially started, with a ceremony attended by Serbian Prime Minister Aleksandar Vucic.

"You'll see a miracle of industry... So parts for the world's best cars will be produced here in Serbia," Vucic said. He described the factory as the biggest ever investment in a factory in Belgrade since 2005.

Vucic said the government will help by investing 22.7 million euros in the project.

Mei Ta is a major company in world's turbocharger market supplying high-added value products, such as turbine housing and center housing components.

World Bank data showed that Serbia had a record high unemployment rate of 25.5 percent in April 2012, which gradually decreased over the years to 17.9 percent in June 2015. Investments in free industrial zones and infrastructure are one of the country's key moves to create new jobs and fight unemployment.